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Technology Stocks : National Instruments (NATI) - Insight, please? -- Ignore unavailable to you. Want to Upgrade?

To: w sun who wrote (151)12/9/1999 7:31:00 PM
From: Randy Ellingson  Respond to of 217
 
Is SW/HW install such a big deal and/or save? In fact, if this is the way NI has to sell most of its systems, it will cut into its margin.

Some customers are probably setting up tens (many, at any rate) of identical systems, so it's easier for them to have them preconfigured for their needs. Then they simply install their customized LabVIEW .vi's, and away they go with their added capacity.

As for margins, they could go up in this case as there will likely be a premium paid for the additional customization. NI is just providing for their customers what some of them are asking for. Good for them, and good for NATI shareholders ultimately. NI is developing a T&M format that clearly reveals the utility of PC based systems. There's nothing like LV for my research laboratory.

Randy



To: w sun who wrote (151)12/10/1999 2:03:00 PM
From: Jason M  Read Replies (1) | Respond to of 217
 
I agree that engineers usually like to set up their own stuff, but when I'd build systems for people in the biotech sector, they'd much prefer to not have to fiddle with that. Also, some larger corporations who can afford the extra markup will spring for the "measurement ready" system. I agree that this won't change much in the bottom line, but the "tie-in" to Dell can't be negative.

JM


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